Please sign in to post.
Posted by
6508 posts

Is it still insane if it accomplishes what the government wants from it? Just because you don't like it doesn't make it insane.

Posted by
3354 posts

Its perfectly sane. Governments all over Europe have discovered that the tourists keep coming, even if you charge them over the odds. So they do that.

It is perfectly rational.

Posted by
2006 posts

The OP is correct that the VAT on hotels will increase from 9% to 21%. It could however been much worse. The original government proposal also included a VAT increase from 9% to 21% on newspapers, books, tickets for museums, concerts, theater performances, sport activities and sport events etc etc. After much protest from many different groups in our society, a political compromise was reached and only the VAT on hotel accommodations, AirBnB’s and others, hostels, guesthouses, B&B’s etc is increased from 9% VAT to 21%.

However! The reason for the VAT increase on hotels has nothing to do with wanting to attract less visitors to our country. Since political discussions aren’t allowed on this forum I can’t get into the reasons why. I can say that this VAT increase proposal was made by our right wing government and that the leader of the largest right wing party has repeatedly and publicly called things like museum and theater visits “left wing hobbies”
Those that want to know more can send me a PM. But please note that I’m not interested in a political discussion via PM.

As other posters have already pointed out, the 12,5% tourist tax only applies to Amsterdam. That high percentage is indeed chosen with the motivation to decrease the number of visitors or at least benefit from them. For those same reasons, cruise lines must pay €14,50 per passenger per day when they dock in Amsterdam.

Posted by
10340 posts

The cruise ship "tax" is one reason why a number of cruise ships have changed their "Amsterdam" call to Ijmuiden.
Not the only one- it also saves time, fuel, pilotage and locking fees.

From my ship passenger perspective Amsterdam also became far less attractive when most of PTA (Passenger Terminal Amsterdam) was sold off. My loyalty then moved to Rotterdam.

In the same vein, transport options are good enough in the Netherlands that land based visitors who have flown in don't have to stay in Amsterdam if you they are particularly cost sensitive.

Posted by
1836 posts

The tax is included in the price shown when you go to book any hotel so tourists don’t need to be aware of exactly how a price is arrived at. Prices for hotels have huge geographic variation anyway. It will then be a case of judging what is good value for your budget. If Amsterdam does become too expensive then people will choose other destinations.

Posted by
2929 posts

From what I am reading, the increased tax applies to the entire Netherlands, not just Amsterdam, Am I
correct?

Posted by
6508 posts

Bostonphil, which tax are you referring to? The OP mentioned the tourist tax, which varies by locale, and the VAT, which is nation wide.

Posted by
183 posts

Like many here have pointed out the tourist tax varies from city to city; the 33.5% (tourist tax + VAT) is applicable to Amsterdam. Nevertheless VAT for overnight accommodations will surge from 9% to 21% nationwide come 2026.

Posted by
2006 posts

It’s a bit confusing to call VAT “hotel tax”. VAT is levied on everything from food and clothes to museum tickets and hotel rates. There are 2 tariffs for VAT in the Netherlands; 9% or 21%.
Presently, things like food, museum visits, public transport tickets are taxed at 9%.

What will change is that from 2026, the VAT on the room rate of hotels, hostels, Airbnb’s etc will increase to 21%. This means the VAT on hotels will be the same tariff as the VAT on clothes, electronics, furniture, bikes, shoes etc.
The revenue of the VAT will go to the Dutch government.

Tourist tax is a special form of tax. It’s a local tax levied on stays in hotels, on campsites, in B&B’s etc. The city council in which the accommodation is located sets the percentage or amount of the tourist tax and the revenues go to that particular city. The tourist tax is payable by everyone who is not a resident of that particular city. I live in a city in the south of the Netherlands, so if I want to stay in a hotel in Amsterdam I must pay the tourist tax. If an Amsterdam local wants to treat himself to a stay in an Amsterdam hotel, he does not need to pay the tourist tax. He already pays other local taxes.

I hope this clears things up a bit. And as I wrote earlier. The VAT increase from 9 to 21% is not done with the aim to decrease the number of tourists in Amsterdam. There are completely different political motives behind this increase that have nothing to do with tourism at all.

Posted by
2929 posts

Hello CJean

I do not understand what VAT is. Seen the word many times but really do not understand it. And truthfully, I have not paid a lot of attention.

When I book through booking.com, it usually says includes a percentage VAT or excludes a percentage VAT

Whatever the percentage has been, I have not been bothered by it. Maybe I need to pay more attention.

And in re-reading the posts, Dutch_traveler just cleared it up.

Posted by
183 posts

@Dutch_traveler:

Thanks for your clarifications; it's very helpful!
Just realized the VAT is 9% for food and non-alcoholic beverages sold in restaurants; but 21% for alcoholic beverages. It's a good thing I don't drink :)

@bostonphil7:

VAT stands for Value Added Tax; it's a type of consumption tax levied on the spending of goods and services.

Posted by
35619 posts

VAT - Value Added Tax - is a little similar to sales tax in the US. Except that sales tax varies by city and state and is added after the price quoted, and based on the sale.

VAT is, with few exceptions and in special circumstances, the same throughout each individual country and can be at various levels depending on product. In the UK and EU it is always rolled into the quoted price in retail transactions but usually quoted separately in wholesale transactions. That is because VAT is payable at all stages of a product's life (or a service). Every time a product or service gains any value the incremental improvement is taxed. Services are a little different but for sake of clarity let's follow the life of a widget - say an engraved wooden plaque. So into the ground a farmer plants a sapling which she bought from a nursery. That cost includes VAT which the farmer pays the nursery who pays the government. Many years later when tree is grown and harvested the farmer sells it to a sawmill who pays the farmer's grandchild for it and that includes added value - a big tree worth more than a sapling - and the farmer's grandchild pays the government the VAT they just collected after subtracting their input VAT, all the VAT they paid over the years on fertilizer, water, care, etc., to grow that tree.

Now the sawmill makes the tree into cut pieces of wood and sells them on to various other folks like lumber yards, and builders, and the same VAT process continues. One plank went to a lumber yard who further cut it up and sold a vaguely plaque sized piece to the plaque maker, and the VAT process continues. They sell it to the guy who makes keys and engraved mugs and picture frames and engraved plaques. Then after having it in the store for a while they get an order from you to put a photo and a dedication on it, they engrave and mount, and sell it to you. The price includes VAT based on the sale price and the engraver pays the VAT to the government minus their input VAT.....

So when you ask what time it is and I tell you how to build a clock.

But hopefully I have removed some of the mystery about the Value Added Tax - which does what it says it does

Posted by
2929 posts

Nigel and others

Thank you

VAT = Value Added Tax which is similar to sales tax. That helps me understand

But I thought I have seen something said that you can request back VAT. I thought I saw statements like this said on the airport sites or maybe hotel sites or maybe retail sites.

Did I see something like this?

Posted by
39 posts

Because the VAT apparently is nation-wide, the overall tax rate is only marginally higher in Amsterdam than in the rest of the Netherlands. I have visited Amsterdam and liked it very much, but it is not on my first tier of European cities, and if I return to the Netherlands, it will be primarily to visit other parts of the country.

I cannot overall be too critical of a high tax rate because I have been saying that if cities and countries in Europe want to reduce the number of visitors, they have the tax and regulatory power to do so.

It is what it is. You can buy today a ticket to the men's finals at the tennis US Open taking place in six weeks (though not a great seat) for under $1,000. A ticket for a comparable seat for today's men's finals in Wimbledom was more than $25,000. A ticket at the Masters costs several times more than a ticket to any other major golf tournament (I keep entering the lottery and have never won).

Posted by
4980 posts

RJ you have a better chance of getting Masters tickets than anyone living within a day's drive of Augusta-those people may even be excluded from entering the lottery. My husband grew up in Augusta and really resents the inability of locals to get tickets now. They even read the obituaries in the Augusta paper to make sure children can't inherit their parents' tickets.

Posted by
35619 posts

not so huge to the tourist. The VAT in Europe in retail transactions is rolled into the price of the good or service. So the price on the website or app is the price including the VAT. The small tourist tax will be seen separately to the all-in room price, probably paid all at once.

Posted by
183 posts

While trying to book hotel for my stay in Amsterdam next year; I notice that most if not all the travel booking websites here in the U.S. still calculate the total invoice payment based on the current 9% VAT instead of the 2026 21% VAT (in additional to the tourist tax). Anyone who booked their accommodation based on 9% VAT should expect to pay the additional VAT tax (21% - 9% = 12%) when they check out at their hotel next year. I hope people who make reservation for 2026 are aware of this little detail.

Posted by
6508 posts

most if not all the travel booking websites here in the U.S. still calculate the total invoice payment based on the current 9% VAT

Why are you booking with a US 3rd party instead of directly with the hotel? Have you checked to see if the hotel's 2026 prices reflect the increased VAT?

Posted by
183 posts

Why are you booking with a US 3rd party instead of directly with the
hotel? Have you checked to see if the hotel's 2026 prices reflect the
increased VAT?

@CJean: I usually do price comparisons between both the hotels and 3rd party. While most of time booking directly with hotel tends to be cheaper; it's not always the case. If 3rd party happens to have sales or if they have some kind of membership rewards/cash-back (also don't forget the credit card points); they could come out on top. I look at the totality and book accordingly.

And yes for those local hotels I happened to be checking did account for the new 21% VAT on their websites; but some European chains and U.S. 3rd party don't. I wonder if they do it on purpose to make their deals look much better to some unwary customers. The hotel will have to charge for the unaccounted portion of VAT when customers check out.

Exactly — always check if VAT is included. Some OTAs make prices look lower by leaving it out, and the hotel adds it at checkout. Easy to miss if you’re not looking closely.